An industry is in ________ if firms have no incentive to enter or exit in the ________ run.
A) disequilibrium; short
B) disequilibrium; long
C) equilibrium; short
D) equilibrium; long

Question

Quizplus · Accepted Answer

In economic terms, an industry is in equilibrium in the long run when firms have no incentive to enter or exit the market, indicating that all firms are making normal profits and the market supply meets the market demand at the prevailing price.

An Industry Is in ________ If Firms Have No Incentive